Skip to main content

MBA: Fewer Households Missed Rent, Mortgage Payments in 2Q

David Krechevsky
Aug 04, 2021

But More Missed Payments in June Than in March

KEY TAKEAWAYS
  • 8.6% of renters, 4.6% of homeowners missed, delayed or made reduced payments
  • Government support, economic rebound cited for improvement
  • Most homeowners behind on payments are in a forbearance plan

Slightly less than 5 million households did not make their rent or mortgage payments in the second quarter of 2021, according to updated research released today by the Mortgage Bankers Association's (MBA) Research Institute for Housing America (RIHA).

The study, Housing-Related Financial Distress During the Pandemic, found that 8.6% of renters (2.86 million households) missed, delayed, or made a reduced payment in June 2021, while 4.6% homeowners (2.19 million) missed their mortgage payments.  

"Given the level of government support during the pandemic and the more recent improvements in the economy and labor market, it is quite possible that the observed levels of rental non-payments may be at or close to pre-pandemic levels," said Gary V. Engelhardt, professor of economics in the Maxwell School of Citizenship and Public Affairs at Syracuse University. "However, the recent rise in COVID-19 cases, and elevated inflationary pressures, could slow economic growth and hiring. These potential headwinds could also impact households still facing hardships."  

Since the onset of the pandemic in the second quarter of 2020, 6.8% of renters and 5.7% of homeowners have missed four or more payments. Missed rental payments now total $41.7 billion, while missed mortgage payments total $76.5 billion.  

"Homeowners' employment situation and ability to make their mortgage payments has meaningfully improved since the onset of the pandemic," said Edward Seiler, executive director of RIHA and MBA's associate vice president, housing economics. "Most homeowners still behind on their payments are in a mortgage forbearance plan. For those still facing hardships once their forbearance plan expires, loan modifications, payment deferrals, and loan payoffs — through either refinancing or a home sale — are all options that could prevent a foreclosure." 

Some key findings of the study:

  • Slightly fewer renters and homeowners missed payments in the second quarter of 2021 compared to the first quarter. However, more renters and homeowners missed their June payment than their March payment: 2.86 million renters (8.6%) and 2.19 million (4.6%) mortgagors missed payments in June, up from 4.53 million households that missed payments in March (7.2% of renters and 4.5% of mortgagors).
  • Property owners continue to play a key role in helping renters: 11% of renters missed one payment over the 15 months of the pandemic, 4.4% missed two payments, 2.7% missed three payments, and 6.8% missed four or more payments. In aggregate, rental property owners lost as much as $7.10 billion in second-quarter revenue from missed rent payments. This was down from $7.48 billion in the first quarter of 2021.
  • Homeowners were the least likely to miss a payment since the second quarter of 2020: 85.4% of mortgagors made all their mortgage payments, 5.6% missed one payment, 1.9% missed two payments, 1.4% missed three payments, and 5.7% missed four or more payments.

To read the full news release, click here.

Published
Aug 04, 2021
CFPB Outlines Consumer Complaint Patterns By Demographic

The Consumer Finance Protection Bureau's recent research brief reported that wealthier communities and those with a higher percentage of white residents tend to have more complaints about loan origination and servicing.

Analysis and Data
Sep 24, 2021
Homeowners Rack Up $2.9T In Equity In Q2 2021

Latest research from CoreLogic's Homeowner Equity Report revealed that U.S. homeowners with mortgages experience an equity gain of 29.3% year-over-year.

Analysis and Data
Sep 24, 2021
Migration Cools Down Slightly By Summer's End

While house hunters continue to migrate at a higher rate than they did earlier on in the pandemic, migration has slowed its pace this past summer as life in the U.S. has somewhat returned back to normal. 

Analysis and Data
Sep 23, 2021
Home Prices In Florida Surge This Quarter

The Florida housing market reported higher median prices with more new listings and a rise in all-cash sales in August compared to last year. 

Analysis and Data
Sep 23, 2021
Existing-Home Sales Retreat In August 2021

The National Association of Realtors reported a 2% decline in existing-home sales on a seasonally adjusted rate from July to August 2021.

Analysis and Data
Sep 23, 2021
Demand Strongly Outpaces Inventory In New York

Nationwide, a shortage of homes for sale is plaguing the housing market and this is especially true in New York, where the inventory of homes for sale has fallen for 22 consecutive months in year-over-year comparisons.

Analysis and Data
Sep 23, 2021